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Market View

EURUSD is bouncing at 61.8% Fibonacci level

Thursday, October 18, 2018 12:05 PM GMT

The yearly EU Consumer Price Index confirmed at 2.1% in September, not considerably higher than the previous month (2.0%). Moreover, the EU Trade Surplus was the smallest since January (€11.7B). On the other side, the annual US Inflation Rate went down to 2.3%, which is the lowest since February, while US Housing Starts fell more than expected (Forecast: 1.237M, Actual: 1.201M). Today’s agenda doesn’t include any major economic news, so it is not expected high volatility during the session.

Looking at the daily timeframe, the EURUSD is respecting the trendline (T1), while the price is currently bouncing at the 61.8% Fibonacci support level.


Heading to H4 timeframe, RSI is moving according to the ascending trendline (T2), at the same time as Stochastics escaped from the oversold zone.


The pair shows signs of potential reversal and the market may offer a bullish opportunity. On the other hand, if price violates the trendline (T1) to the downside, then the setup is not valid.

Always review your own analysis. If there is a confluence between the current study and your own strategy, then you may have even better trading setups.  

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